"Economies of scale" means that as a company produces larger numbers of a particular product, the cost for each unit of the product goes down.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages a company can achieve as it increases its production scale. As production quantities increase, companies can often negotiate better prices for raw materials and other resources, optimize production processes, and reduce wastage. These efficiencies result in lower production costs per unit, or cost savings that increase as the scale of production grows, ultimately resulting in lower prices for consumers or higher profit margins for the company.

"Economies of Scale" Means That as a Company Produces Larger